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Electricity Discos blame FG’s failure to pay N100bn subsidy, other promises for travails
Nigeria’s Electricity Distribution Companies (DisCos) have attacked the Federal Government over what they described as ‘renationalisation’ of electricity firms.
They insisted that government, via the Bureau of Public Enterprise (BPE) and Nigerian Electricity Regulatory Commission (NERC), allegedly has a hand in the failure of the power sector by not “meeting extant guidelines and regulations.”
The Association of Nigerian Electricity Distributors (ANED), an umbrella body of the DisCos, in a statement, claimed that government failed to fulfil a N100 billion subsidy and other privatisation promises made since 2013.
At least, five firms – Abuja DisCo, Benin DisCo, Ibadan DisCo, Kaduna and Kano DisCos – have fallen into the hands of banks they took credit from after being unable to break even eight years after licensing.
The prevailing situation, which comes few days after NERC announced a contract-based electricity market, stakeholders said the development might worsen the industry’s woes, pointing to an alleged breach by BPE and NERC.
Executive Director, Research and Advocacy, Sunday Oduntan, said the utility companies are deeply concerned about the “restructuring” of the five electricity distribution firms, adding that the move “is inconsistent with all the guidelines and processes necessary to comply with the framework of privatisation agreements and the rule of law.”
According to him, resultant outcome of the move has been an expropriation or backdoor renationalisation of the DisCos by the Federal Government.
He went on: “Such renationalisation or expropriation must be viewed through a historical context as necessary for a proper understanding of the performance challenges that the DisCos have been faced with since privatisation.
“Fundamentally, the basis of privatisation was flawed from the beginning, due to conditions that were not met by the Federal Government, while expecting the DisCos to meet their performance obligations. Not only were the investors short-changed because of insufficient and unreliable data that was provided by BPE to them during the privatisation process, but the government also committed to and failed to deliver on DisCos’ debt-free financial books, payment of Ministries, Department and Agencies (MDA) electricity debts and N100 billion subsidy.”
While it said the DisCos take responsibility for some issues, ANED stated that the government also contributed to the challenges. It said the government holds 40% stakes in the DisCos, has representatives on the boards that take operational decisions but the DisCos are blamed for the misalignment in the power sector.
“Expropriation or renationalisation, by itself, of the DisCos will not change the current bleak situation or outlook of the Nigerian Electricity Supply Industry (NESI),” ANED noted.
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Alake Inaugurates Nigeria-US Solid Minerals Committee, Dismisses $700bn Claim, Says No Assets Sold
Joel Ajayi
The Minister of Solid Minerals Development, Dr. Dele Alake, on Tuesday inaugurated the Nigeria-United States Committee on Strategic Cooperation in the Solid Minerals Sector in Abuja, dismissing reports that Nigeria sold $700 billion worth of solid minerals to the US.
The inauguration followed the strategic cooperation framework established between Nigeria and the United States during the 81st United Nations General Assembly in New York.
In a statement issued on Wednesday by the Head PRESS and Public Relations Department Mrs. Kania Maliki Andeyaba stated that, Alake in the Memorandum of Understanding, MoU, signed with the US is a government-to-government platform to facilitate business-to-business engagements between American investors and Nigerian local operators, not a sale of assets.
Harping on the importance of the solid minerals sector to President Bola Ahmed Tinubu’s economic diversification agenda, he noted that the administration was committed to reducing dependence on a mono-product economy through the sustainable development of Nigeria’s vast mineral resources.
According to him, the Nigeria–US partnership as a strategic initiative to attract investment, promote technology transfer, strengthen local mineral processing and create employment opportunities.
“There is no sale of any Nigerian asset. There’s nothing exchanging hands,” Alake declared.
“We created a platform to facilitate mingling of US investment ventures with Nigeria’s local operators. It is in the public domain. We signed it in public and published it in four or five national newspapers.”
The Minister said reports claiming the US was coming to take over Nigeria’s minerals and security architecture were untrue at best and products of riotous imagination at worst.
Explaining the policy thrust, Alake said Africa has historically held the short end of the stick in global economic transactions, and Nigeria is determined to change that model.
“We have the resources, the critical elements the world needs to transit to clean energy. So we are creating a new paradigm — you bring your capital, expertise and technology, to match with our natural resources and create a win-win situation . The investor gains, Nigeria gains.’’he said.
Nigeria, he stressed, had operated a mono-cultural economy dependent on oil, while solid minerals were exploited informally — with ores taken “from pit to port” without value addition.
Alake said government has now made local processing mandatory, refusing to grant mineral titles to investors without a clear pathway to processing in Nigeria.
He said the policy led to the springing up of processing factories, including the largest lithium processing plant in West Africa commissioned recently in Nasarawa by the Vice President, and informed the formation of the African Minerals Strategy Group.
Alake noted that investor confidence has returned due to macro-economic reforms by President Bola Tinubu that guarantee security of tenure and repatriation of profits.
He charged the committee to discharge its assignment responsibly, saying its work is strategic to achieving the President’s $1 trillion economy target.
To this end, he told the Committee to ensure effective coordination, identify investment opportunities and translate the framework into measurable outcomes capable of positioning Nigeria as a competitive player in the global solid minerals industry.
In his welcome address, Permanent Secretary of the Ministry, Engr. Faruk Yusuf Yabo, said the inauguration translates growing bilateral engagements into a structured framework for practical cooperation and investment mobilization
Economic Officer at the US Embassy, Jonathan Baas, said President Donald Trump has prioritized three areas for US embassies — energy, artificial intelligence/super intelligence, and critical minerals.
Baas said Washington’s direction is to work with partners to secure critical supply chains while ensuring partners capture value.
“We just signed a contract today on looking into building AI data centres in Nigeria at the Nigerian Economic Summit. That’s the direction Washington wants us to go,” he said.
In his vote of thanks, CEO/Managing Director of Nigeria Solid Minerals Company, NSMC said that the committee
is expected to coordinate implementation, facilitate investment and monitor progress towards achieving the objectives of the Nigeria–US cooperation framework.
The inauguration reinforces the Federal Government’s commitment to repositioning the solid minerals sector as a key driver of economic diversification, industrial development and national prosperity under President Tinubu’s Renewed Hope Agenda.
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